RULES cont.

TABLE OF CONTENTS

RULE 4 Relating to the use of Rebate Funds

RULE 5 Relating to the rotation of Host State

RULE 6 Relating to host site selection

RULE 7 Relating to acceptance of waste

RULE 8 Relating to assessment of fees for funding costs

RULE 9 Relating to assessment of fees for CIF

POLICY STATEMENT Relating to administrative fee
RULE 10 Report of waste generated for disposal

RULE 21 Relating to filing a court action against the CIC

RULE 23 Relating to the withdrawal of a member state

RULE 24 Relating to the admission of new members states

RULE 27 Public notice and announcment procedures


RULE 4

RELATING TO THE USE OF REBATE FUNDS

4.1 GENERAL

Any surcharge rebate funds received by the Commission after January

1, 1988, from the U.S. Department of Energy in accordance with the

Low-Level Radioactive Waste Policy Amendments Act of 1985 (Public

Law 99-240), may, in the discretion of the Commission as guided by this

Rule, be made available by the Commission to any party state which

has been selected and is in the process of becoming a host state for a

regional facility as designated by the Commission. Any state receiving

such funds shall submit to the Commission any and all accounting for

such funds as may be necessary to conform to the requirements of

Commission Rules 4.2 and 4.3, Public Law 99-240, and the U.S.

Department of Energy.

4.2 USE OF REBATE FUNDS BY A MEMBER STATE

A. REQUEST FOR FUNDS AND APPROVAL PROCEDURES

The member state requesting funds for reasonable and necessary Rule

4.2 expenses of the Host State shall submit to the Commission an

annual proposed budget request for use of a specific amount of needed

funds by April 1 prior to each fiscal year July 1 through June 30) [except

that the Commission may alter that submission date for fiscal year

1995-96 to address and resolve timing problems for that fiscal year) on

forms usually and customarily used by the member state in its normal

state budget request process. The request should identify in detail how

the member state proposes to expend the requested surcharge rebate

funds in the fiscal year for locating and licensing a regional waste

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management facility and/or a regional waste minimization program.

The Commission will review and approve all or part of the budget

request and will distribute to the Host State surcharge funds held by the

Commission if the Commission finds that the proposed expenditure(s)

of the Host State meet the purposes described in this rule. The initial

disbursement on or about July 1 shall be for 25% of the annual amount

approved. The remainder of the disbursement shall be transferred on a

quarterly basis to the host state commencing October 1. In deciding

whether or not to approve any such Host State request, the

Commission may consider:

(1) the adequacy and completeness of prior accounting for and

actual expenditures of such surcharge rebate funds;

(2) the amount of surcharge rebate funds still held and unspent by

the member state from prior disbursement of such funds;

(3) the availability to the member state of funding for proposed uses

through alternative sources, including reimbursements, fees, or

surcharges collected by the Host State from license applicants,

State appropriations, or federal funds;

(4) the consistency of the proposed uses with the limitations and

requirements of this rule and federal law; and

(5) any competing needs of the Commission consistent with said

federal statutory requirements, those being the following

purposes:

(i)to establish low-level radioactive waste disposal facilities;

(ii)to mitigate the impact of low-level radioactive waste

disposal facilities on the host state;

(iii) to regulate low-level radioactive waste disposal facilities;

or

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(iv)to insure the decommissioning, closure and care during the period of institutional control of low-level radioactive waste disposal facilities.

A.1 USES OF FUNDS BY MEMBER STATE

Any member state requesting funds from the Commission

pursuant to this Rule, shall request and, if granted, use such funds

only for the purposes associated with locating and licensing a

regional waste management facility and/or a regional waste

minimization program. Such use of funds may include, but not be

limited to, the conduct of geological and technical studies relating to

the siting of such a facility, the employment of technical staff and/or

contractors for the purpose of reviewing a license application, a

public outreach program related to the location of such a facility and

those tasks associated with the review of a license application.

B. ACCOUNTING, REPORTING AND AUDITING

The Host State shall keep separate financial records to account for all

receipts, expenditures, and all other transactions involving use of the

surcharge rebate funds. Such records together with all contracts and

documentation supporting the accounting transactions, shall at all

times be subject to inspection by the Commission with 5 business days

advance notice.

The Host State shall, within 30 days after the close of each calendar

quarter, file with the Commission a financial report in reasonable

detail of all receipts and expenditures of all direct and indirect use of

the surcharge rebate funds and all transactions involving the surcharge

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rebate funds. The financial report will contain sufficient detail to

identify: (1) personnel costs, including the identification, the nature of

the task or work performed, the number of hours worked, (2) any

travel, lodging, or conference expenses of personnel using any

surcharge rebate funds, (3) operating expenses, (4) capital outlays,

(5) the exact identification of all other expenditures or uses of the

surcharge rebate funds, and (6) any contractual commitments,

including a copy of the contract with all amendments, and a narrative

status of each contract, including the total amount of the contract, any

related contractual payments and the remaining obligation to date of

the report.

The financial report of the use of the surcharge rebate funds will

present the fund balance at the beginning of the reporting period, all

revenue and expenses during the reporting period, and the fund

balance, at the end of the reporting period.

The Host State may encumber sufficient surcharge rebate funds in its

possession to cover incurred year-end expenses not paid by June 30 but

due and payable within the next 30 days. Within 30 days after the end

of the fiscal year, the Host State shall return to the Commission all

surcharge rebate funds not expended nor so encumbered as an

unexpended balance.

For Commission purposes, on an annual basis, the Host State financial

report will be prepared and submitted in the same level of detail

described above, shall be subject to audit procedures, and reported

thereon by an independent certified public accountant. The Host State

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shall annually, within 90 days after the close of each fiscal year, file

with the Commission a copy of the Host State's annual financial report,

accompanied by the audit report of the independent certified public

accountant. if the Host State does not elect to use the services of an

independent certified public accountant for the purposes of submitting

to the Commission an annual audited financial report, then the

Commission shall obtain the services of an independent certified

public accountant in place of the Host State's accountant for the same

reporting purposes. The Commission shall use the services of an

independent certified public accountant for the Host State financial

report, and the cost shall first come from the Host State's surcharge

rebate funds then, if necessary, from surcharge rebate funds held by the

Commission.

The certified public accountant's audit report(s) shall address the Host

State's compliance with Commission Rule 4 governing the nature or

purpose for which funds may be expended or applied. The Host State

shall promptly, within 60 days of Commission determination, remit to

the Commission from state funds (non-surcharge rebate funds) the

amount of any funds expended for purposes which do not comply with

Commission Rule 4, as determined by the Commission, after review

and consideration of the audit report.

For Department of Energy purposes, annually on December 31st of

each year, any member state that has received surcharge rebate funds

pursuant to Rule 4, shall make a full and complete reporting to the

Commission on Department of Energy forms of the use of those funds

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during the previous calendar year. These reports shall be made for

purposes of complying with U.S. Department of Energy requirements.

4.3 IMPROPER EXPENDITURES

Any member may challenge the legitimacy of any expense submitted by

a state receiving funds under Rule 4. if such a challenge arises, the

Commission shall at a special meeting determine the sufficiency of the

challenge, and issue a ruling concerning the legitimacy of the

expenditure. The Commission may request any documentation

required to make an informed decision and any state requested to

provide documentation shall submit such documentation.

If the Commission finds that an expenditure is not legitimate, the

Commission may rule that the offending state must repay the entire

amount of such expenditure or a portion thereof. Failure by such state

to repay in accordance with a ruling of the Commission, shall place the

state in a position of being found in violation of its duty to perform its

obligation under the terms of the Compact.

Adopted 4-24-84 Amended 6-8-87, Amended June 15, 1995

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